What Are Strategic Objectives? I Strategic Objectives Defined

Summary

In this whiteboard session, Erica from OnStrategy discusses the intricacies of defining strategic objectives, a critical yet challenging aspect of strategic planning. She explains that these objectives bridge the gap between a company's vision and its annual goals, serving as mini vision statements. Erica provides a framework for creating strategic objectives, emphasizing the importance of a clear label, strong verb, and statement of impact. She also outlines the anatomy of a strategic objective, including the intent statement with sections on current position, needed shifts, and approach. The session concludes with insights on how to use these objectives to roadmap plans and build an annual plan, ultimately transforming big ideas into actionable results.

Takeaways

• 🔍 Strategic objectives act as a bridge between a company's vision and its annual goals or actions.
• 📝 They can be referred to by various names such as strategic priorities, goals, pillars, or planks.
• 📋 Strategic objectives are defined as broad statements of direction that translate the vision into actionable annual plans.
• 🏷️ A good strategic objective should start with a label, followed by a strong verb and a statement of impact.
• 📈 The intent of a strategic objective should be elaborated with details on current status, needed shifts, and the approach to achieve the objective.
• 📊 Strategic objectives are used to roadmap plans by year, providing a framework for planning with a long-term horizon.
• 📉 They also serve as a foundation for building an annual plan, with each objective leading to specific annual goals.
• 🔑 The structure of strategic objectives answers the questions of 'where', 'what', and 'how', guiding the strategic planning process.
• 🔄 The script suggests a two-part series, with the first part focusing on defining strategic objectives and the second on building them into a framework.
• 📢 The session encourages viewers to subscribe to social channels for more content on strategizing and planning.

Q & A

What is the main focus of the whiteboard session presented by Erica from OnStrategy?

The main focus of the whiteboard session is on defining strategic objectives, which Erica identifies as a critical yet challenging part of strategic planning.

Why does Erica consider strategic objectives as the hardest part of strategic planning?

Erica considers strategic objectives as the hardest part of strategic planning because they serve as a bridge between a big vision and translating that vision into actionable annual goals or actions.

What is the purpose of strategic objectives according to the session?

Strategic objectives serve the purpose of connecting the big idea with what is actually getting done, providing direction and forming the basis for an annual plan.

How does Erica suggest defining strategic objectives?

Erica suggests defining strategic objectives as broad statements of direction that act as mini vision statements, translating the overall vision into actionable steps.

What are some alternative terms for strategic objectives mentioned in the script?

Alternative terms for strategic objectives mentioned include strategic priorities, strategic goals, pillars, planks, kumquats, and oranges.

Can you provide an example of a well-structured strategic objective as described in the session?

An example of a well-structured strategic objective is 'Market growth: Strengthen our competitive position,' which starts with a label, followed by a strong verb and a statement of impact.

What should be included in the intent statement of a strategic objective?

The intent statement of a strategic objective should include the current context, the shifts needed for realization, and the approach or method for achieving the objective.

How can strategic objectives be used to roadmap a strategic plan?

Strategic objectives can be used to roadmap a strategic plan by structuring them by year, which helps in building a plan with a clear horizon and direction.

What is the relationship between strategic objectives and annual planning?

Strategic objectives are used to build out an annual plan by defining specific annual goals that align with and advance the objectives, thus creating a cascade of actions.

What is the significance of the 'where,' 'what,' and 'how' components in strategic planning as mentioned in the session?

The 'where,' 'what,' and 'how' components in strategic planning are significant as they answer the questions of direction, intended outcomes, and methods of achieving strategic objectives, respectively.

What is the recommendation for viewers after understanding strategic objectives?

The recommendation for viewers is to watch part 2 of the series for an example of how to build a framework with strategic objectives and to subscribe to OnStrategy's social channels for more insights.

Outlines

00:00

📈 Introduction to Strategic Objectives

Erica from OnStrategy introduces a whiteboard session focused on defining strategic objectives, which she considers the most challenging aspect of strategic planning. Strategic objectives serve as a bridge between a company's vision and the annual goals or actions that bring that vision to life. The session is part of a two-part series, with this part focusing on defining what strategic objectives are and the next part discussing how to build them. Strategic objectives can be referred to by various names such as strategic priorities, goals, pillars, or planks, but for this session, they are termed 'strategic objectives.' They are described as broad statements of direction that translate the company's vision into actionable annual plans.

Keywords

💡Strategic Objectives

Strategic objectives are defined in the script as broad statements of direction that serve as a bridge between a company's vision and its annual goals or actions. They are crucial for translating a big idea into actionable steps. In the video's context, strategic objectives are likened to mini vision statements that guide the organization's planning process, ensuring that the long-term vision is aligned with short-term actions.

💡Annual Goals

Annual goals are specific, measurable objectives that an organization sets to achieve within a year. They are derived from strategic objectives and help to break down the broader vision into manageable parts. In the script, annual goals are mentioned as a way to move strategic objectives forward, providing a clear path for what the organization aims to accomplish within a specific timeframe.

💡Vision

A vision in the script refers to a company's long-term aspiration or the big picture of what it aims to achieve. It is the guiding light that informs the strategic objectives and annual goals. The vision is what strategic objectives help to translate into actionable plans and goals, ensuring that the organization's actions are aligned with its ultimate aims.

💡Agile Planning

Agile planning is a flexible and iterative approach to strategic planning that allows for rapid adaptation to changes. It is mentioned in the context of having a long-term horizon while still being able to adjust plans as needed. The script suggests that strategic objectives can help provide direction within an agile planning framework, offering a balance between long-term vision and short-term adaptability.

💡Intent Statement

An intent statement is a detailed explanation of the purpose and desired outcome of a strategic objective. It includes the current context, the shifts needed, and the approach to achieve the objective. In the script, the intent statement is emphasized as a way to bring strategic objectives to life, providing clarity on where the organization is, where it needs to go, and how it plans to get there.

💡Competitive Position

Competitive position refers to the standing of a company in relation to its competitors in the market. In the script, strengthening the competitive position is given as an example of a strategic objective. This concept is central to the discussion of how strategic objectives can be used to improve the organization's market growth and overall standing.

💡Strategic Priorities

Strategic priorities are the key areas of focus that an organization deems most important for achieving its strategic objectives. They are mentioned as an alternative term for strategic objectives, highlighting the importance of prioritizing certain goals over others to drive the organization's strategic direction.

💡Pillars

In the script, pillars are used as a synonym for strategic objectives, suggesting that they are foundational elements that support the organization's strategic plan. Pillars are the core components that, when strengthened, provide stability and direction to the strategic objectives.

💡Kumquats and Oranges

Kumquats and oranges are used humorously in the script to illustrate that strategic objectives can be called by any name, as long as they serve their purpose within the organization's strategic planning. This light-hearted example emphasizes that the terminology is less important than the function these objectives serve.

💡Roadmap

A roadmap in the context of the script refers to a visual representation of the strategic objectives laid out over time, typically by year. It helps in planning and provides a framework for how the organization intends to achieve its long-term vision through a series of connected steps and milestones.

💡Annual Plan

The annual plan is a detailed strategy document that outlines the specific goals and actions an organization will take in a given year to achieve its strategic objectives. It is derived from the strategic objectives and serves as a guide for annual operations, ensuring that the organization's efforts are focused and aligned with its broader vision.

Highlights

Strategic objectives are the hardest part of strategic planning as they bridge the gap between a big vision and its annual translation into goals or actions.

Strategic objectives can be referred to by various names such as strategic priorities, strategic goals, pillars, planks, kumquats, or oranges.

They are defined as broad statements of direction, acting as mini vision statements to guide the creation of an annual plan.

A good strategic objective starts with a label, followed by a strong verb and a statement of impact.

An example of a strategic objective is 'Market growth: Strengthen our competitive position'.

Intent statements under strategic objectives should include the current context, needed shifts, and the approach to achieve the objective.

Strategic objectives serve as a roadmap by year, providing a framework for building a plan with a horizon.

They are used to build out the annual plan, with each objective leading to a set of annual goals.

Strategic objectives answer the questions of 'where', 'what', and 'how' in the strategic planning process.

The two-part series will cover how to define strategic objectives in this session and how to build them in the next.

Strategic objectives are crucial for translating a big idea into actionable results.

The example provided illustrates a generic strategic objective that can be tailored to an organization's specific needs.

Intent statements are essential for bringing strategic objectives to life by detailing the current state, required changes, and the method of approach.

Agile planning can benefit from strategic objectives by providing direction even in the absence of a long-term horizon.

The cascade effect of strategic objectives helps in setting up a sequence of goals and initiatives that align with the broader strategic plan.

The importance of naming strategic objectives is emphasized, as it helps in communication and understanding within the organization.

The session encourages subscribing to social channels for more content on strategizing and planning.

Transcripts

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\pgncont\pgndec\pgnstarts1\pgnrestart Hi, everyone, it's Erica from OnStrategy.

Welcome to today's whiteboard session on Defining Strategic Objectives. From my point of view,

strategic objectives are the hardest part of strategic planning. And why is that? That's

because they're really in between a big vision and translating that big vision into annual

goals or actions. And they make the bridge between the big idea and what's actually getting

done this year, this quarter, this week. So, strategic objectives serve such an important

purpose, and it can take a little bit to get right. This is a two-part series. Check out

this one first, so we're gonna go through what they are, and the other one, we're gonna

talk about how to build them.\par \par So let's define strategic objectives. First of

all, you can call them anything you want. We've heard them called strategic priorities,

strategic goals, pillars, planks, kumquats, oranges. It doesn't really matter. Today,

we're gonna call them strategic objectives. And we are defining them as broad statements

of direction. And again, they're little mini vision statements that translate your vision

into a bridge to build an annual plan. Okay. So, broad statements. That's the idea. Let's

look at the anatomy of.\par \par So here's an example of a really good strategic objective.

We like to start with a label. So what is it? Market growth, let's just say that, followed

by, so a colon, a strong verb, and a statement of impact. In this case, strengthen our competitive

position. Super simple, this is a little bit generic. You could continue the sentence if

you want to, to make it a little more relevant to your organization. But you know, quick

talking points, one of the strategic objectives for the organization is market growth, and

what we're trying to get done is strengthening our competitive position. Great.\par \par

Then underneath that, and I don't have it fully built out here, but we like to actually

build out an intent couple of sentences, maybe even a paragraph. And this is really the sense

of where are you trying to go with this strategic objective? It really starts to bring it to

life. And we like to have three sections in that intent statement. Where are you now,

in the context of these strategic objectives, in this case, your competitive position? You

know, strategic plans have a lifespan. And so, it's nice to know, at the time in which

you wrote it, where are you now in a couple of sentences?\par \par What are the shifts

that are needed in order to actually realize strengthening your competitive position? In

this case, this will help you build great goals and initiatives. And then what's the

approach? What's your method for strengthening your competitive position? And by that, I

mean, organic acquisitive, those types of things. So, you could envision your intent

statement, having, you know, a couple of sentences here, a couple of sentences here, and a couple

of sentences here. Okay?\par \par How do you use your strategic objectives? There are two

really great ways to use them. Number one is you're gonna roadmap your strategic objectives

by year. And what we mean by that is this starts to become your framework for how do

you actually build a plan that has a horizon? Now, in agile planning, it's hard to have

a really long horizon, but you do have a direction. So this, you know, starts to build out your

swim lanes, your strategic objectives start to build out your swim lanes for your plan.\par

\par The second thing that you use your strategic objectives for is building out your annual

plan. So, of course, for each strategic objective, you'll have a handful of annual statements,

in this case, I'm calling them goals. What are you actually going to achieve in, you

know, the year that you're in order to move this objective forward? And then so on and

so forth. So it starts your cascade. So, a really nice thing to think about is strategic

objectives answer the question where, and then following under that is the what, and

then following under that is the how. It doesn't matter what you call them. But absolutely,

those are the components that make a strat plan go from a big idea to actually something

that's producing results.\par \par And that's all we have for you today. Check out part

2 for an example of how to build a framework with your strategic objectives. Don't forget,

subscribe to our social channels. Happy strategizing.}